Companies in India projecting a 7.7 per cent salary raise in 2021: Survey

Companies in India are likely to offer a 77 per cent salary increase in 2021 one of the highest among the BRIC nations and higher than the average actual increase of 61 per cent in 2020 says a surveyGlobal professional services firm Aon Plc on Tuesday released insights from its latest Salary Increase Survey in India as per which 88 per cent of the surveyed companies reported that they intend to increase salaries in 2021 as compared to 75 per cent companies in 2020 reflecting positive business sentimentThe study that analysed data across 1200 companies from more than 20 industries noted that while salary increments indicate strong recovery the Code of Wages could be a gamechangerWe expect the increment dynamics for 2021 to play out over a longer period of time given the uncertainty and potential impact of forthcoming changes Nitin Sethi partner and Chief Executive Officer of Aons performance and rewards business in India saidThe proposed definition of wages under the new Labor Codes could lead to additional compensation budgeting in the form of higher provisioning for Benefit plans like gratuity leave encashment and provident fund Sethi notedWe expect organisations to review their compensation budgets in the second half of the year once the exact financial impact of the Labor Codes is known It is also possible that some of the salary increments may not translate into higher cashinhand for employees if organisations choose to pay higher provident fund contributions on the new definition of Wages he saidAs per the survey sectors with the highest projected increases include ecommerce and venture capital hitechinformation technology ITeS life sciences On the contrary sectors with the lowest projected increases include hospitalityrestaurants real estateinfrastructure engineering servicesIt further noted that attrition has been one of the lowest in the last few years at 128 per cent which talks about the maturity of India Inc and also lesser opportunity for people to move as they preferred to wait and watchDespite a tough 2020 with stringent lockdowns India continues to project the highest salary increases among the BRIC nations the survey notedThe highestpaying sectors in 2021 continue to be the ones from last year iquest information technology information technologyenabled services life sciences ecommerce and fastmoving consumer goods said Roopank Chaudhary a partner in Aons human capital business in IndiaChaudhary further noted that Its notable that the sectors that were adversely impacted by COVID19 such as retail hospitality and real estate are projecting healthy increases in the range of 56 per cent Such numbers reflect their intent to stay relevant and to control attrition which had increased for these industries last yearThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever